Henderson Far East Income Share Discussion Threads

[panshanger1] 04/12/2020 09:48

What has been particularly impressive here was the size of the dividend. Still around 7%Doesn't often trade below NAV but if it does grab a few. DYOR GLA

[carpingtris] 04/12/2020 08:33

Edison issues review on Henderson Far East Income (HFEL) Henderson Far East Income (HFEL) has experienced a tough period of capital performance as market participants have focused ever more on growth and momentum rather than cash flows and dividends. However, in a year where the majority of investment trusts have needed to dip into reserves to avoid cutting their dividends, HFEL stands out in that it not only delivered year-on-year dividend growth of 2.7% for FY20, it fully funded its dividend from portfolio income and even made a small contribution to reserves to help underpin future dividend growth. Managers Mike Kerley and Sat Duhra remain convinced that market focus will return to value and yield factors, as seen in the quantitative easing era of 2011-13, given the 'even lower for even longer' interest rate outlook.

[carpingtris] 26/11/2020 20:48

It's happening across multiple boards..

[mister md] 26/11/2020 19:16

some disgruntled person ticking all messages down here ?

[carpingtris] 23/11/2020 10:29

Aleman - reserves haven't been used here is my understanding so even if Divi's have dropped globally hopefully it's temporary and if the reserves cover a year then after that maybe Divi payments globally start increasing again.

[aleman] 23/11/2020 09:49

UK dividend payments down 47% in Q3. Australia -40%. Global -14%. USA -4%. China +3%. Https://www.theguardian.com/uk-news/2020/nov/23/covid-cuts-third-quarter-dividends-to-lowest-level-since-2016

[tartshagger] 23/11/2020 08:21

Director buying (£30k) - usually a good sign. Yielding ~ 7.5%, substantial income reserves with some quality holdings, what's not to like? This may be due a re-rating :)

[mister md] 19/11/2020 09:32

Agreed. Added significantly to my holding yesterday, a great long term play

[panshanger1] 04/11/2020 21:51

Yielding nearly 8% and a covered dividend ( in fact reserves have increased ) during a global pandemic In a growing market ( Asia ) Nothing not to like here IMO B of E toying with negative rates too !!DYOR

[aleman] 04/11/2020 07:43

Dividend was covered and Revenue Reserves rose slightly to £26m compared to £32m annual dividends. Two large Chinese banks make up 5.1% of the portfolio and a Taiwan financial 2.0% so looks to have gone down a bit.

[2sporrans] 03/11/2020 07:59

The problem with that full holdings list is that it is old news. The top 10 on the HFEL webpage is pretty much current; the full list on the excel ss is end of July att. Actually a month to the good v when i last looked at it a few days ago but well behind the curve nontheless.

[2sporrans] 02/11/2020 11:00

Further to post above: At 30Jun20 the top 3 holdings were in Chinese banks, ~4.3% weighting for each. China Const. Bank one of them. None of those 3 banks feature in the 'current' top 10 [10th rank BHP 2.7% weighting]. Can't find holdings info. deeper than top 10 beyond 30Jun20. When find time will peruse monthly reports to find out how much and when those holdings were sold down. Looks like a move into insurance and non-banking stuff within financials lately.

[purplepelmets] 30/10/2020 21:52

Ex div. Added on the drop yesterday.

[aleman] 30/10/2020 15:36

Must be a big sell to come since there is plenty of regular buying going on but the price is not moving like usual. It might explain today's mark down to below NAV.

[novision] 30/10/2020 15:16

CHC15 - might be a read across from HINT annual report which includes: "in the half year report, we noted the fact that some of the companies held in the portfolio had been asked by their respective governments or regulators to delay or moderate their dividends until the impact of the current pandemic was clearer. We also indicated that the board intended to utilise the Company's revenue reserves to smooth any temporary shortfall between the Company's distributions and portfolio income. Whilst the majority of the portfolio's holdings have paid dividends, a number have reduced or withheld dividends and it has been necessary to use a relatively moderate amount of the reserves to support dividend payments this year (£917,000 of the £8,081,000 at the start of the year). Earnings have been retained every year since launch for a rainy day, so it is appropriate that they are used now in these unprecedented times. We continue to recognise the importance of dividend income to our shareholders and will continue to use reserves to complement the income generated by the portfolio. The current revenue reserves would provide several years of dividend support based on 2020 results."

[andyj] 30/10/2020 13:27

Yes after moving to JAGI, I am rebuilds position here. Happy to keep adding below £3. Good income and capital appreciation prospects in time.

[chc15] 30/10/2020 13:20

Wow what's happening here, big drop

[panshanger1] 30/10/2020 12:15

Happy to add at this level

[2sporrans] 15/10/2020 11:40

The capital appreciation was decent with HFEL until about 3 years ago. I do wonder whether the bar ought to have been progressively lowered as to the 'qualifying' level of income for the shares held by HFEL. Quite apart from the pervasive crushing of yields thinning the prospect field, the balance of reward between growth and 'value' stocks has ever more favoured the former as discount rates have also been crushed. All but a few growth stocks will be screened out, rapid future divi growth notwithstanding. Wonder how big the HFEL reserves are and how much is being consumed to sustain the high payout, currently fully 7.5%. Will we ever be enlightened? Still, the HFEL portfolio is highly [net] cash generative; to be treasured in these times. And East-SE Asia looks to be best region to invest, by some margin.

[zac0_4] 09/10/2020 16:54

carpingtris - I also hold Rathbone Global Opps. Another excellent performer! My holding in Fundsmith Equity fund is directly with Fundsmith. It's my largest holding by far. I've set up an automatic withdrawal payment with them. They pay a set amount, from my capital, to me on a quarterly basis. Just like a dividend payment. In that way I haven't got the psychological barrier of having to sell units myself! To date it's worked well. I've had payments made to me equivalent to 5.8% of my initial investment and my capital is still 27% up! Another possible option for consideration. Good Luck.

[carpingtris] 09/10/2020 07:54

Thanks for the opinions - interesting. I'm looking for growth in my pot as well as reliable Divi payers 'a mixture'. My Rathbone Global Opps. and Bailie Gifford Global Income Growth have both performed well this year - but I wouldn't stick all my eggs in one basket.

[danieldruff2] 09/10/2020 07:46

I've come to a similar opinion but over the years I have found the steady state of this fund useful when the rest of the market drops. I sell 25-50% of my HFEL, invest in bombed out stocks, then top it up again. Has worked well.